News and Articles

Tax Deduction for Domestic Rent in Hong Kong: What You Need to Know

The Hong Kong government continues to provide relief to taxpayers through the Tax Deduction for Domestic Rent, a measure designed to ease the burden of housing costs. With the deduction ceiling set at HK$100,000 for the 2025/26 year of assessment, eligible individuals can achieve meaningful tax savings – provided they understand the rules and apply…
Tax Treatment of Disposal of Equity Interests in Hong Kong: What Businesses Should Know

Disposing of equity interests – whether in private companies or listed shares – is a routine transaction in Hong Kong. Yet the tax treatment of disposal gains remains complex. Are they capital (non‑taxable) or revenue (taxable)? The answer depends on multiple factors, and recent reforms have introduced new certainty for qualifying disposals. With the Inland…
Hong Kong’s Provisional Tax System: What Businesses Need to Know

Hong Kong’s tax regime is renowned for its simplicity, low rates, and territorial basis. One distinctive feature is its provisional tax system, which often surprises newcomers. This article explains how provisional tax works and highlights practical considerations for businesses. Whether you’re a local SME or a multinational expanding into Asia, understanding provisional tax is key…
Tax Objection and Appeal Against Assessment – Part Two

If you remain dissatisfied with the Commissioner’s determination, you may lodge an appeal to the Board of Review under section 66 of the Inland Revenue Ordinance (“IRO”). The notice of appeal must be submitted within one month after the date of the Commissioner’s written notice of determination. It must be in writing and state clearly…
The Company Re-Domiciliation Regime in Hong Kong

Hong Kong’s company re-domiciliation regime, effective from 23 May 2025, offers a streamlined process for non-Hong Kong companies to transfer their place of incorporation to Hong Kong without forming a new legal entity. This regime, introduced under the Companies (Amendment) (No. 2) Ordinance 2025, aims to attract international enterprises, drive inward investment, and reinforce Hong…
Starting a Company in Hong Kong as a Foreigner

Can a foreigner set up a 100% foreign-owned company in Hong Kong? Definitely YES!! Any if expatriates, without Hong Kong permanent residency status, even you are NOT living in Hong Kong at all, and without Hong Kong identity card, YES, you can proceed to set up a 100% wholly-owned private limited company by shares in…
Foreign Sourced Income Exemption (‘FSIE’) for Passive Income

To be one of the best jurisdictions in Asia for foreign investors looking for investments opportunity and assets management, Hong Kong enjoys a good geographical location, efficiency in tax management, sound legal system and availability of skilled workforce. Relatively low tax rate together with the adoption of territorial source principle of taxation which lead to…
How to Build an Effective Compliance Framework in Hong Kong

Compliance risk is one of the main risks any company, no matter big or small, faces, and Hong Kong jurisdiction, in spite of its business-friendly environment and laissez-faire policies, is not an exception. Whether you’ve just launched a startup or already manage a big firm, chances are you must comply with all regulatory obligations in…
The Responsibilities of Hong Kong Company Director

Under the Hong Kong Companies Ordinance, a Hong Kong private company limited by shares must have at least 1 director, while public companies and companies limited by guarantee – at least 2 directors. If a company has 2 or more directors, they are referred to as board (or board of directors). This role is essential…
Tax objection and appeal against assessment – Part One

If you disagree with an assessment, you may lodge an objection and appeal. Under section 64(1) of the Inland Revenue Ordinance (“IRO”), a notice of objection must be received by the Commissioner within one month after the date of the notice of assessment. It must be in writing format and state precisely the grounds of…

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